Inventory levels in October rose on a year-over-year measurement for the first time in a decade while the median sales price sank to one of its lowest levels for this year, according to the latest RE/MAX National Housing Report
Home sales last month were 4.6 percent lower than October 2017. This marked the third consecutive month and the eighth month during 2018 of annualized declines in sales volume. While sales dropped, inventory levels rose by one percent from one year earlier—although the inventory level was also 2.6 percent lower from September. The inventory supply for October was 3.5 months, up from 3.3 months one year earlier but also lower than the 3.7 months figure in September.
October’s median sales price of $236,000 marked the 31st consecutive month of year-over-year price increases and the highest October price in the 10-year history of the RE/MAX report; only five of the 53 metro areas tracked by RE/MAX saw a year-over-year decrease in their median sales price. But on the flip side, the 4.9 percent increase gain was the third-lowest year-over-year median sales price growth of 2018.
“The market continues to move toward equilibrium. The modest inventory increase is a much welcome sign for buyers,” said RE/MAX CEO Adam Contos. “Although home sales were down year-over-year, it’s encouraging to see the magnitude of the decline decrease from the sharp drop we witnessed in September. The trend of easing price increases remains and that’s also a positive.”